JOSE MIRANDA DA COSTA JUNIOR AND ANOTHER v. LORENZO YIH, also known as YU CHUAN YIH AND OTHERS

JOSE MIRANDA DA COSTA JUNIOR AND ANOTHER v. LORENZO YIH, also known as YU CHUAN YIH AND OTHERS

After weighing Order 2 rule 5 factors the court found MGHK's breach was caused by clear professional negligence compounded by lack of candour and misleading affidavits, that MGHK's and its lawyers' conduct and procedural gamesmanship and evidence of external control/funding by Lorenzo disentitled MGHK to relief, and accordingly dismissed the summons for relief from sanction with costs.

Citation
JOSE MIRANDA DA COSTA JUNIOR AND ANOTHER v. LORENZO YIH, also known as YU CHUAN YIH AND OTHERS
Parties
1st Plaintiff: JOSE MIRANDA DA COSTA JUNIOR; 2nd Plaintiff: MIRANDA GEMS E MINE LTDA; 1st Defendant: LORENZO YIH aka YU CHUAN YIH; 2nd Defendant: PARAIBA LIMITED; 3rd Defendant: MIRANDA GEMS (HK) LIMITED; Plaintiff (by Counterclaim): MIRANDA GEMS (HK) LIMITED; 1st Defendant (by Counterclaim): JOSE MIRANDA DA COSTA JUNIOR; 2nd Defendant (by Counterclaim): DHARMENDRA MUTHA trading as SHREY INTERNATIONAL; 3rd Defendant (by Counterclaim): TRIANGULO COMERCIO DE GEMAS E JOIAS LTDA; 4th Defendant (by Counterclaim): AZIZI ENTERPRISES COMPANY LIMITED; 5th Defendant (by Counterclaim): NEVESTONES LTDA; 6th Defendant (by Counterclaim): HATTA NEW WORLD COMPANY, LIMITED; 7th Defendant (by Counterclaim): MIRANDA GEMS E MINE LTDA
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 August 2014
Case Number
HCA156/2010
Procedural Posture
Civil: Security for Costs; Relief From Sanction / Interlocutory Application Determined in Chambers (application for Relief From Sanction Dismissed)
Outcome
MGHK's summons for relief from sanction dismissed with costs in favour of the 1st defendant by counterclaim (Jose Miranda)
Legal Topics
Security for Costs, Relief From Sanctions, Unless Order, Conduct of Litigation, Separate Legal Personality, Discovery, Solicitor Negligence
Source Language
EN
Civil Procedure Company Law Costs Professional Negligence Trusts and Equitable Remedies Security for Costs Relief From Sanctions Unless Order +4 more

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Parties

JOSE MIRANDA DA COSTA JUNIOR

1st Plaintiff

MIRANDA GEMS E MINE LTDA

2nd Plaintiff

LORENZO YIH aka YU CHUAN YIH

1st Defendant

PARAIBA LIMITED

2nd Defendant

MIRANDA GEMS (HK) LIMITED

3rd Defendant

MIRANDA GEMS (HK) LIMITED

Plaintiff (by Counterclaim)

JOSE MIRANDA DA COSTA JUNIOR

1st Defendant (by Counterclaim)

DHARMENDRA MUTHA trading as SHREY INTERNATIONAL

2nd Defendant (by Counterclaim)

TRIANGULO COMERCIO DE GEMAS E JOIAS LTDA

3rd Defendant (by Counterclaim)

AZIZI ENTERPRISES COMPANY LIMITED

4th Defendant (by Counterclaim)

NEVESTONES LTDA

5th Defendant (by Counterclaim)

HATTA NEW WORLD COMPANY, LIMITED

6th Defendant (by Counterclaim)

MIRANDA GEMS E MINE LTDA

7th Defendant (by Counterclaim)

Procedural Posture

Civil: Security for Costs; Relief From Sanction / Interlocutory Application Determined in Chambers (application for Relief From Sanction Dismissed)

Legal Issues

  1. 1 Whether relief from sanction should be granted under Order 2 rules 4 and 5
  2. 2 Whether an 'unless order' for security for costs was appropriate
  3. 3 Whether solicitor negligence or 'administrative error' excuses the client and warrants relief

Ratio Decidendi

After weighing Order 2 rule 5 factors the court found MGHK's breach was caused by clear professional negligence compounded by lack of candour and misleading affidavits, that MGHK's and its lawyers' conduct and procedural gamesmanship and evidence of external control/funding by Lorenzo disentitled MGHK to relief, and accordingly dismissed the summons for relief from sanction with costs.

Court Disposition

MGHK's summons for relief from sanction dismissed with costs in favour of the 1st defendant by counterclaim (Jose Miranda)

Orders

  • Application for relief from sanction dismissed
  • Costs awarded in favour of the 1st defendant by counterclaim (Miranda)